ARTIFICIAL INTELLIGENCE

AI-driven marketing campaigns are improving performance – Yum Brands

By our African Marketing Confederation News Team | 2024

Parent company of fast-food brands such as KFC and Pizza Hut reports ‘significant increases in consumer engagement’ using AI tools.

Yum Brands, the global parent company of the likes of KFC and Pizza Hut, says it has improved its marketing performance due to several new artificial intelligence initiatives introduced in the key North American market. 

 

“This quarter, we successfully launched personalised AI-driven marketing campaigns that, relative to traditional digital marketing campaigns, generated significant increases in consumer engagement, leading to increased purchases and a reduction in consumer churn,” said Chris Turner, the company’s Chief Financial Officer. 

 

He was speaking during a discussion with market analysts about the Yum Brands’ third-quarter earnings results which were released last week. The results covered the quarter ended 30 September 2024. 

Photo: Parviz Hajizada from Pexels

“Turner declined to break out specific metrics stemming from Yum’s AI-powered marketing initiatives but offered additional colour into how the fast-food giant’s ‘AI factory’ operates,” reports the industry news website Marketing Dive. 

 

“For example, Taco Bell (a Mexican-inspired QSR brand that does not operate in Africa) can accrue data from points of sale and digital menu boards in stores, as well as leverage the chain’s popular loyalty programme and app. Linking these sources of intel together and enhancing them with AI allows for more personalised promotions and a refined picture of the customer for other marketing purposes.” 

 

AI strategies ‘broadly and easily scalable’ 

 

According to Turner, AI strategies will continue to be rolled out across other brands and territories within the Yum stable, and that these strategies will be “broadly and easily scalable”. 

 

Taco Bell, which returned strong third-quarter earnings for the company, is also in the process of rollout out AI-based voice technology at hundreds of its drive-thrus in the United States, with Turner saying that consumer response has been “very positive” to date. 

 

This runs counter to the experience of some other brands which have experimented with AI at drive-thrus. For example, in June 2024 McDonald’s made a surprise announcement that it was ending a trial of an AI-powered drive-thru ordering system that had been running since 2021. 

 

According to US media reports at the time, no specific reason was given for ending the trial, but there were various viral videos and media coverage documenting when artificial intelligence drive-thru systems got orders wrong. 

 

You can watch a TikTok video here, called ‘Fighting with McDonald’s robot’.

View all articles »
author avatar
Rozanne
See Full Bio

PUBLICATIONS

Strategic Marketing for Africa Magazine

CONTACT INFORMATION

[email protected]

0
    Your Cart
    Your cart is emptyReturn to Shop
    Continue Shopping

    Dr Kin Kariisa

    Group CEO - Next Media

    Dr. Kin Kariisa is an extraordinary force at the helm of Next Media Services, a conglomerate encompassing NBS TV, Nile Post, Sanyuka TV, Next Radio, Salam TV, Next Communication, Next Productions, and an array of other influential enterprises. His dynamic role as Chief Executive Officer exemplifies his unwavering commitment to shaping media, business, and community landscapes.
    With an esteemed academic journey, Dr. Kariisa’s accolades include an Honorary PhD in exemplary community service from the United Graduate College inTexas, an MBA from United States International University in Nairobi, Kenya, a Master’s degree in Computer Engineering from Huazong University in China, and a Bachelor’s degree in Statistics from Makerere University.
    Dr. Kariisa pursued PhD research in Computer Security and Identity Management at Security of Systems Group, Radboud University in Nijmegen, Netherlands. As a dynamic educator, he has shared his expertise as a lecturer of e-Government and Information Security at both Makerere University and Radboud University.

    Dr Kin did his PhD research in Computer Security and Identity Management at Security of Systems Group, Radbond University in Nigmegen, Netherlands. He previously served as a lecturer of e-Government and Information Security at Makerere University in Kampala, Uganda and Radbond University in Netherlands.

    Dr Kin did his postgraduate courses in Strategic Business Management, Strategic Leadership Communication and Strategies for Leading Successful Change Initiatives at Harvard University, Boston USA.

    • Other current and previous roles played by Dr Kin Kariisa:
    • Lecturer of e-Government and Information Security to graduate students at Makerere University, Kampala and Radbond University in the Netherlands
    • Director of Eco Bank Uganda Limited, one of the largest banks in Africa
    • Chairman of the National Association of Broadcasters, an umbrella industry association for all Television, Radio and online broadcasters in Uganda.
    • Chairman of Board of Directors of Nile Hotel International, that owns the leading hotel in Uganda, Kampala Serena Hotel.
    • Chairman of Board of Directors of Soliton Telmec Uganda, the leading telecom company in Optic fibre business managing over 80% of optic fibre in Uganda.